BOSTON -- The same day Red Sox general manager Theo Epstein said it was unlikely Boston would obtain Bartolo Colon after monthlong trade talks with Montreal, the Expos reportedly are close to moving the coveted right-hander to the Florida Marlins.

A big league executive familiar with Montreal's workings told the Boston Herald in a story published Thursday that the Expos believe they will trade 20-game winner Colon to the Marlins for a package built around right-hander Brad Penny.

It is possible that the deal might include the Reds as part of a three-way trade, according to the Herald's report.

Montreal, owned by Major League Baseball and ordered to cut its payroll to $40 million, has been shopping Colon for a while. Expos GM Omar Minaya has been talking with the Red Sox since the winter meetings in Nashville in mid-December, talks that later branched off into trying to find another team that would make a Boston-Montreal deal work.

"We're really no closer to a deal than we were in Nashville," Epstein said Wednesday. "There's been no progress. Actually, I don't expect there to be. I'm actually as pessimistic about our chances of matching up with Montreal as I have been in a long time."

Penny, 24, went 8-7 with a 4.66 ERA in 24 starts while battling several injuries last season, but his potential, talent and low salary could make him a respectable replacement for Colon (20-8, 2.93 ERA last season with Cleveland and Montreal) in the Expos' eyes. Penny was eyed by the Red Sox in discussions that centered around outfielder Trot Nixon this offseason, but Florida was unwilling to part with the right-hander at the time.

It's the second major setback in his efforts to improve Boston's rotation. The Red Sox lost out to the Yankees in the bidding for Cuban free agent Jose Contreras, who got a $32 million, four-year deal from New York.

Epstein spoke in a conference call Wednesday after talking with Minaya. But Epstein, reluctant to part with young players, hadn't given up and said he would keep pursuing Colon. Third baseman Shea Hillenbrand's name came up in trade talks, but that wasn't enough to obtain Colon.

Without Colon, Epstein said the Red Sox still have a strong rotation. But it lacks the big names of Boston's chief rival, the Yankees.

The acquisition of Contreras and re-signing of free agent Roger Clemens gives the Yankees eight starters, including Mike Mussina, Andy Pettitte, David Wells, Orlando Hernandez, Jeff Weaver and Sterling Hitchcock.

The Red Sox have Pedro Martinez, Derek Lowe, Tim Wakefield, Casey Fossum and John Burkett.

"We have five that we like and five that are healthy," Epstein said. "Then we've got (Frank) Castillo, (Ryan) Rupe and (Ramiro) Mendoza, who have all started.

"We want to win now and we're going to win. We won 93 games last year. Our club is better on paper. We're going to have an outstanding club next year. We already have an outstanding starting rotation."

Epstein wouldn't discuss what players were mentioned in trade talks or what issues caused them to hit a snag. One could be the contract status of Colon, who is signed only through the 2003 season. The Red Sox also don't want to trade Fossum, a 25-year-old left-hander who drew interest from the Expos.

"If you give up all your young players," Epstein said, "it's going to be very difficult to maintain any sort of sustained success, and that's our goal."

He's not interested in obtaining Colon at too high a cost just to make a splash and convince fans the Red Sox are serious about winning this year.

"Our goal is not to convince anyone of anything," Epstein said. "Our goal, collectively, is to win."

He also said the team hasn't finalized a $4.5 million, two-year deal with free agent third baseman Bill Mueller, although "we'll probably have an announcement on a position player within the next two to three days. It's just a matter of finalizing procedural matters."

Mueller, who hit .286 in seven seasons with San Francisco and the Chicago Cubs, could help the Red Sox's first-base problem. Hillenbrand, who hit .293 last season, could play first against lefties. Lefty hitter Jeremy Giambi could face righties.

Information from The Associated Press was used in this report.